Posted by Mitchell on March 01, 2002 at 10:25:07:
Sharon:
I canvassed the newspapers “Real Estate Wanted” and “Money To Lend” sections for REIs and severa REIs in my area advertise heavily. I made appointments with several of them and found out their parameters. I determined that, after the first assignment, if I made $3,000 profit, that, at this time, in this market, it did not make sense to assign any contracts. About $3,000 is all that is necessary to do a PP&C, a Paint, Patch and Carpet cleanup-rehab. The market is strong enough so that many buyers would appear to buy the property after cleaned up.
Finding the property is much harder than finding a REI to assign the good property too.
If you go to the country clerks office, look up the Book of Mortgagees, you will find many investors. These are individuals whose name you see repeatedly, who have owned a house for a short period of time, sell the house, and take back a mortgage. You can track the ownership history, seeing when the transactions took place.
These investors are very savy. They will usually not offer you very much for the assignment. I have found one investor who will limit his profit to net $5,000. on a small deal. You can negotiate with them but they typically know the marketplace and are able to find a deal any time that they want one.
Where in NY are you? I am in Albany, NY.
Good luck,
Mitchell